From the Sector

• Revenue Increases to HK$8,316 Million with Net Profit After Tax Surging Significantly
• Recording a Turnaround to HK$381 Million
• Re-Establishes ESPRIT’s Market Leadership

ESPRIT HOLDINGS LIMITED has announced its audited financial annual results for the year ended 31 December 2021, highlighted by a significant increase in both revenue and profit attributable to shareholders of the Company to HK$8,316 million and HK$381 million respectively, in which the profit attributable to shareholders of the Company also recorded a turnaround versus the loss attributable to shareholders of the Company of HK$414 million for the six months ended 31 December 2020. Gross profit margin was 48.6%, 7.0% higher than the Corresponding Period. Please refer to the Company’s results announcement for the Current Year for further details.

Such financial improvement was attributable to various reasons, including (i) the new infrastructure and strategies instituted by the current management team; (ii) improvement in sales with higher gross profit margin; (iii) positive results of efficient cost control measures; (iv) improved inventory management; and (v) growth in E-commerce.

Although revenue in the Current Year was affected by lockdowns in the Company’s major European markets during the first quarter of 2021, and due to increased restrictions on entry requirements into stores during the fourth quarter of 2021, the Group generated revenue via three main channels: E-commerce, wholesale, and owned retail stores. As the ESPRIT brand website and third-party E-commerce partners continued to trade during lockdown, a large portion of the Group’s sales were generated online. This business model allowed it to mitigate some of the negative impacts of the Pandemic in the retail segment. Another driver of growth came from selling fewer discounted products from the Company’s retail business compared to 2020.

The Group has not forgotten the ESPRIT mission and long-standing commitment to sustainability. The Company has continued to work tirelessly towards developing cutting-edge materials that set new standards in terms of environmental sustainability. The Company has formulated and further advanced its ESG strategies to establish ESPRIT as an industry pioneer. Such strategies involve the greater use of sustainable fibers, developing new and innovative product options that support a circular economy, and ensuring environmental awareness is a key message that underpins all of the Group’s projects. To achieve these objectives, the Management has identified four key pillars of growth (Sourcing and Procurement; Marketing and Product; IT, Internet, and E-commerce; and The ESPRIT Brand Story) that are paramount in maintaining the loyalty of existing ESPRIT patrons and attracting new customers.

Looking ahead, the global economy is anticipated to be negatively affected by the lingering effects of the coronavirus pandemic and the conflict in Ukraine. The already unstable logistics industry and disrupted supply chain will likely be further impacted, which in turn will result in higher logistic service costs. Despite the unfavorable global economic outlook, the Group believes that under the leadership of its current management and with the support of dedicated staff members, the Company is on track to ongoing profit growth.

According to the United Nations Conference of Trade and Development, the fashion and textile industry represents one of the major polluters of water in the world, with an estimated 93 billion cubic metres of water used per year.

On the occasion of Water Day, C.L.A.S.S. CEO and Founder Giusy Bettoni talked to Sensil® BioCare, Kornit, Ecoalf and Unesco on how their strategies and processes can preserve our most precious, yet limited resource.

Key Takeaways from the Speakers:
"The ocean is absolutely crucial for the survival of this planet, since it almost covers 71 percent of its surface. Writer Arthur Clarke once said: how inappropriate is to call this planet earth, when it is clearly planet ocean."
- Francesca Santoro, Programme Specialist at IOC UNESCO Regional Bureau for Science and Culture in Europe

"Sensil® BioCare is our solution to reduce the persistence of textile waste in the ocean. We embedded technology in it so that if any microfiber is released in the washing, they will break down faster than conventional nylon. Based on an external study, we have seen an almost 60 percent microplastic reduction in two years"
- Michelle Lea, Vice President Global Marketing at Nilit

"When it comes to our printing processes, almost no water is in use and the waste is minimal. We have never seen this before in this industry. Based on LCA tests, when compared to screen printing our "Atlas Max" printer saves up to 93 percent of water, while the "Presto" printer saves up to 95 percent of water".
- Michal Arbel, Sustainability Communication Lead at Kornit Digital

"One of the most important projects of the company is Upcycling the Oceans, with the aim of tackling the marine litter in collaboration with the fishing sector. Last year, we collected 300 tons of litter from the seabed, and we promoted circular economy by transforming the waste in products."
- Irene Diez, Director at Ecoalf Foundation

Less than 24 hours after winning Paint the Future awards, three startups have already signed their letters of intent to continue working together on sustainable business opportunities with AkzoNobel.

It’s the next step of a continuing collaborative innovation journey. The startups had the opportunity to explore their solutions with their mentors and industry experts through each phase of the global startup challenge, including an intense three-day bootcamp. Now having signed the letters of intent, they will develop their solutions even further with AkzoNobel.

“The winning startups are joining our go-to-market acceleration program, connecting them to a global network of people and resources,” says Menno van der Zalm, Director of the AkzoNobel Incubator. “Over the next six months, we’ll work together to validate their solutions for our customers and develop a joint value case.”

The following three solutions won over the international jury of experts and business leaders:

• Winner: SolCold
  The solution from Israeli startup SolCold is a sustainable self-cooling coating based on anti-Stokes. It uses the sun’s energy to keep the inside temperature much cooler without having to use any electricity.
• Winner: Aerones
  Latvian startup Aerones brings a robotic solution to wind turbine maintenance. Their crawling robot allows technicians to safely and efficiently perform inspections, cleaning and repairs at height.
• Winner: SprayVision
  From the Czech Republic, SprayVision brings a data-driven approach to optimizing spray application of paint, offering customers full control over the process. The solution helps to reduce environmental impact by saving material and improving quality.

Premium Group presents its D2C festival The Ground, which premieres from 7 - 9 July at Messe Berlin. The Ground is a new event format where fashion, lifestyle, culture, and diverse perspectives are merged. It was founded to bring brands and consumers together to build a better future through celebration and collective action.

Over three days, guests from across Europe will meet up to experience innovative brand pop-ups with stories and collections, panel talks, live music, physical and mental health activations, and even step inside the Metaverse.

Power of purpose
The Ground mainly targets Gen Z which is driven by a deep sense of purpose. The 18-29 year olds expect the brands they support to share the same values. Their priorities are sustainability, relationships, health and wellness, work and education as well as inclusivity and individuality.

The Ground features six distinct areas where visitors can take part in different experiences: Sport, Beauty, Music, Play, Soul and Talk provide inspiration and many moments to learn. Fashion is featured throughout all areas and is the connecting element of The Ground.

Special season topic: MAKE PEACE!
Building off the Good Life Goals (personal actions that everyone can take to help support the SDGs by the UN), The Ground focuses on one goal for each edition that touches people and brands at this moment in time. A goal that makes a positive contribution to the future, and is thus worth celebrating.

Due to the current conflicts in the world, this July’s goal is more clear than ever: PEACE! It will be reflected in a big charity auction of specially designed pieces of the exhibiting brands and partners.

1 ticket - 4 events
Taking place simultaneously as the trade show and conference formats SEEK, PREMIUM and FashionTech which will attract over 20,000 buyers, retailers, brands, professionals, influencers, and media to Berlin – The Ground will help to create lots of fashion buzz in the capital. The all-in-one ticket for trade visitors also guarantees access to The Ground.

On March 15th C.L.A.S.S. Eco Hub launched the 3^rd edition of C.L.A.S.S. ICON Award, the annual competition with the aim of sponsoring and rewarding a visionary creative who is able to combine design, responsibility, innovation and communication.

The next selected winner of the international competition for visionary fashion creatives who are able to convey the values of sustainability not only to fashion professionals, but also to the wider public, will be chosen in accordance to the principles of the C.L.A.S.S. Manifesto of Responsible Fashion (https://www.classecohub.org/wp-content/uploads/2022/03/Copia-di-C.L.A.S.S.-ICON-MANIFESTO-2.pdf).

The prestigious reward for the game changers of fashion counts C.L.A.S.S. support at 360° degrees, from material consultancy to communication support and a partnership-like engagement in C.L.A.S.S. activities both on and off-line. This specifically includes:

• 2 coupons valued 1000 € each to source responsibly on THE SMART SHOP, the inspirational materials’ bank and samples' e-shop, that includes a premium selection of the C.L.A.S.S. Material Hub’s materials
• A consultancy session with C.L.A.S.S. TEAM: the ICON will have the chance to choose between an introduction to responsible innovation workshop or a specific session focusing on brand’s needs, for example responsible sourcing, certifications, communication.
• Full communication support in terms of press releases, social media and events organisation

C.L.A.S.S. is also happy to announce that its partners will offer an exclusively customed package of marketing and communication activities:

• Renoon is the app devoted to Responsible Shopping agglomerating thousands of ways to combine style and sustainability values may it be new, pre-loved and rental clothing. The package dedicated to C.L.A.S.S. ICON includes: a dedicated brand page on Renoon, the possibility to check and edit the description of the brand with Renoon's team and a featured article/interview on the new Renoon Library.
• IDEE BRAND PLATFORM is a company based in Milan, which provides dedicated support in all commercial activity for design and fashion brands through the various stages of their growth steps. The package dedicated to C.L.A.S.S. ICON includes the support of the brand in commercial activities for SS23 and AW23/24.
• SUSTAINABLE BRAND PLATFORM is a digital platform to measure, improve and communicate fashion brands sustainability making it simple and affordable. Through the creation of a real DIGITAL TOOLBOX SBP wants to give fashion brands all the instruments they need to obtain a global assessment of their sustainable performance. The package dedicated to C.L.A.S.S. ICON includes the Ecoscoring for brand’s sustainability and the creation of its Sustainable ID Card on Sustainable Brand Platform, as well as the use of the SBP logo, communication on social media and an interview in SBP/Magazine.
• WHITE has always been attentive to the themes of responsible fashion and alongside the new generations of designers. That’s why they decided to support the international sustainability platform C.L.A.S.S. (Creativity, Lifestyle And Sustainable Synergy) with the annual award C.L.A.S.S. ICON, which promotes awareness in new sustainability values. For this reason, WHITE offers to the winner of C.L.A.S.S. ICON: a digital space on its WSM-WHITE platform and a physical space at the next show scheduled for September.

Applications are open until 1st May.
Email to classicon@classecohub.org, with a list of information such as brand vision and objectives, sustainability values and strategy, designer profile, a photo/video story of your latest collection, and any previous award (https://www.classecohub.org/c-l-a-s-s-icon).

• Sales increase of 9.5% to €1,007.0 million driven by almost all business units
• EBITDApre improves by 50.9% to €140.0 million, reaching the upper end of the 2021 guidance raised in July
• Net financial debt reduced from €286.5 million to €206.3 million
• Start of business in 2022 overshadowed by uncertainty resulting from the war in Ukraine

Rising demand in almost all market segments led to a 9.5% increase in Group sales to €1,007.0 million in fiscal 2021 compared to the previous year (2020: €919.4 million). Almost all business units contributed to the pleasing sales performance. At 50.9%, EBITDApre improved disproportionately to Group sales and amounted to €140.0 million in fiscal 2021 (2020: €92.8 million). Increased sales and the associated higher capacity utilization contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation initiated at the end of 2020.*

Outlook
Based on the assumptions outlined and including the costs of the energy hedges, the company expects Group sales for the 2022 financial year to be at the previous year's level and EBITDApre to be between €110 million and €130 million.*

* See attachment document for more information,

The shareholders of Autoneum Holding Ltd approved all proposals of the Board of Directors at today’s Annual General Meeting and agreed to the proposed dividend of CHF 1.50 per share. Norbert Indlekofer becomes a new member of the Compensation Committee following the previously announced departure of This E. Schneider.

In accordance with Ordinance 3 on Measures to Combat the Coronavirus (COVID-19), the Board of Directors of Autoneum Holding Ltd decided to hold the 2022 Annual General Meeting without the physical presence of the shareholders. For this reason, the Company asked them in advance to exercise their rights exclusively through the independent voting proxy. He represented 66.9% of a total of 4 672 363 shares.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2021 as well as the proposed appropriation of available earnings. A dividend of CHF 1.50 per registered share will be paid out as of March 29, 2022. This corresponds to a distribution of around CHF 7 million, or around 30% of the consolidated profit attributable to Autoneum shareholders.

Hans-Peter Schwald, Chairman of the Board of Directors, emphasized in his video message that the return to profitability and the distribution of a dividend are to be viewed as a positive sign and a success, especially given the challenging environment. CEO Matthias Holzammer, for his part, indicated how important the corporate strategy is for the ongoing and future success of the Company and how it was implemented last year. In addition, he highlighted that through its own strengths Autoneum had managed to improve its operating result in all four regions and to position itself well for the future.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Rainer Schmückle, Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee. Newly elected to the Compensation Committee was Norbert Indlekofer.

The vision of the OEKO-TEX® Association, which was founded in March 1992 through a partnership between the Hohenstein Research Institute and the Austrian Textile Research Institute (OETI), is still reflected today in the organization's core values: trust, safety, and sustainability. For three decades, OEKO-TEX® has pursued the goal of building trust for companies and consumers and enabling them to make responsible decisions to protect people and the planet. "Our services bring transparency to the international textile and leather industry supply chains," says OEKO-TEX® Secretary General Georg Dieners. "They enable all stakeholders to make mindful decisions that help preserve our planet for future generations."

OEKO-TEX® market leadership
In 1992, 20 years before the United Nations announced the Sustainable Development Goals (SDGs), OEKO-TEX® launched STANDARD 100 by OEKO-TEX®, now one of the best-known labels for product safety.
"It emerged from the Schadstoffgeprüft nach ÖTN 100(tested for harmful substances according to ÖTN 100), developed by OETI in 1989 to address increasing public interest in textile ecology and health," the Austrian Textile Research Institute reminds us. The limit values and test methods on which STANDARD 100 by OEKO-TEX® is based were internationally standardized and are adapted to the latest scientific findings and legislation at least once a year - a principle that is applied to all OEKO-TEX® standards. Prof. Dr. Stefan Mecheels, the owner of the textile testing service provider Hohenstein, adds: "From the very beginning, we have considered the needs of all players in the textile value chain and continue to create solutions for current and future market requirements."

At least seven SDGs are firmly integrated into the OEKO-TEX® product portfolio. For example, Good Health & Well-Being (SDG 3) and Clean Water & Sanitation (SDG 6) are reflected in the STeP by OEKO-TEX® factory certification, and Responsible Consumption & Production (SDG 12) and Climate Action (SDG 13) are implemented through the comprehensive MADE IN GREEN by OEKO-TEX® product label.

Today, the international association consists of 17 independent research and testing institutes focused on textile and leather, with contact offices in over 60 countries. They are responsible for the joint development of the test methods and limit values in the OEKO-TEX® Standards and carry out laboratory tests and factory audits according to globally uniform specifications. These comprehensive product and process audits to ensure appropriate risk management, consumer and environmental protection, and legal compliance. With their wide-ranging research and development, the accredited OEKO-TEX® test institutes provide important insight for innovations within the textile and leather industry. They work in close cooperation with manufacturers and make a significant contribution to the development of high-quality textile and leather products at all stages of the value chain.

Mirror of social and political development
Being close to the market, and ideally, one step ahead is essential to supporting companies who are adapting to constantly changing conditions and meeting consumer expectations. Therefore, the development of OEKO-TEX® is not only a reflection of scientific knowledge but also of social and political trends. The focus is always on standardizing sustainable action and measures and making it easier for the industry to quickly and comprehensively implement sustainability goals.

Exchange with third parties is particularly valuable for this purpose. OEKO-TEX® participates in various international multi-stakeholder initiatives such as the Organization for Economic Co-operation and Development (OECD), the Partnership for Sustainable Textiles, the ZHDC (Zero Discharge of Hazardous Chemicals), and Greenpeace.
In addition to cooperation with external multi-stakeholder initiatives, the OEKO-TEX® International Advisory Board (IAB) meets annually. The core function of the IAB is to help review consistent and market-oriented Standards development proposals by the OEKO-TEX® Working Groups. In addition, OEKO-TEX® is conducting a public stakeholder consultation to gain further insights from all interest groups, which it will integrate into further development of the Standards.
Using three decades of experience for the future
The founding goal of enabling responsible choices that preserve our planet for future generations has become increasingly urgent over the past 30 years. So, OEKO-TEX® is even more resolute than ever in developing comprehensive solutions. We stand by industry and consumers as a trusted partner for the challenges ahead. In addition to the IMPACT CALCULATOR launched in January 2022, which helps STeP by OEKO-TEX® certified production facilities reduce their carbon emissions and water consumption, this summer, the association will launch a service to help companies transition to the upcoming Due Diligence Laws.

The Spanish recycling company Anviplas has been involved in plastics recycling for more than 30 years, during which time it has built up extensive know-how that now benefits customers throughout Europe, in Africa and in Asia. Their cooperation with EREMA is almost as long. Since 1991, Anviplas has relied on the technology and service provided by the Austrian recycling machine manufacturer.

Employing 64 people, Anviplas recycles post-industrial and post-consumer plastic waste, especially HD and LD-PE as well as PP, to make recycled pellets in all colour variations. The production capacity is 1,800 tonnes per month. An EREMA type INTAREMA® 1716 TVEplus® recycling machine with screen changer is in operation at the site in Navarcles (Barcelona) for processing the PP material stream. This patented extruder system was developed for handling difficult-to-process materials, such as heavily printed films as well as very moist waste. This machine is characterised by its optimised 3-stage degassing system; firstly by preheating and predrying the material in the preconditioning unit, secondly because the screw design allows reverse degassing, and thirdly in the degassing zone of the extruder.

Anviplas customers manufacture a huge bandwidth of products made using their recycled pellets. They range from various film products, such as stretch, shrink, mulch and silage films, to irrigation, corrugated and high-pressure pipes, as well as containers such as tubs, bottles, barrels and crates.

In February 2022 the Repeats Group, a pan-European platform for LDPE recycling, and Anviplas announced, that Repeats has made an investment in the Spanish recycling company. For Repeats this investment in Anviplas represents an important step in building a pan-European plastics recycling platform.

International technology group ANDRITZ will be presenting its special-purpose machines for needlepunch production (including its portfolio for carbon applications) at JEC World 2022 in Paris, France, from May 3 to 5.

Experience and Know-How
ANDRITZ designs, develops, and engineers special-purpose machines for very specific and sensitive applications, like aerospace, railway, and military needs. Therefore, it can provide the market with customized machines offering perfect solutions, whether they are needed for prototypes or for industrial production.

Skilled Engineers
In increasingly demanding markets, the skilled ANDRITZ engineers and technicians help customers get the most out of their investments. The variety of cases they face every day enables them to optimize both output and quality depending on the fibers used, the challenge, and the customer’s final application.

Carbon Expertise
Experience with conductive fibers enables ANDRITZ to overcome challenges and provide access to new product developments. The company’s expertise lies in textile know-how as well as a deep understanding of related constraints. It includes carded/crosslapped processes for nonwovens made from recycled carbon fibers, which can be delivered in rolls or die-cut shapes.

Unconventional Needling for End-Uses
ANDRITZ addresses customers’ challenges by offering solutions and expertise in terms of straight and multi-axial needling, enabling the consolidation of fibers on flat or non-flat surfaces (such as rounded shapes) and even of layers up to 350 mm thick. New developments are made possible thanks to the outstanding ANDRITZ testing facility.

Support and Development
The ANDRITZ needlepunch technical center in Elbeuf, France, is open to visitors. Innovative strength and adaptability are the characteristics that make ANDRITZ the preferred partner in the search for genuine, efficient, and reliable solutions in the interests of productivity and premium, state-of-the-art consolidation. Secrecy being key in such sensitive development work, ANDRITZ naturally always guarantees the utmost confidentiality.